How much money would you have to deposit for 5 consecutive years (equal annual deposits) starting at the end of the year if you want to be able to withdraw ₱ 120,000 each year for four years starting at the end of the 8th year? i = 11% per year

How much money would you have to deposit for 5 consecutive years (equal annual deposits) starting at the end of the year if you want to be able to withdraw ₱ 120,000 each year for four years starting at the end of the 8th year? i = 11% per year

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Q: What lump sum of money must be deposited into a bank account at present time so that $1,50 can be…

A: In this we have to calculate present value of cash flow withdrawal.

Q: Suppose an individual makes an initial investment of $2500 in an account that earns 7.8%. compounded…

A: Given information: Initial investment is $2,500 Interest rate is 7.8% Number of periods is 12 made…

Q: What is the future worth of a series of equal yearly deposits of $6,000 for 6 years in a savings…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Suppose an individual makes an initial investment of $2,000 in an account that earns 7.2%,…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Deposits of $1000 are made semiannually into an account which earns 8% semiannually. If the deposits…

A: given data $1000 deposit are made semiannually for 9 years it earns 8% compounding interest…

Q: How much money will be in the bank account at the end of 4 years if $5000 is deposited at the end of…

A: Future value: It implies to the value that an investment will carry at some point of time in future…

Q: b._ You want to have GH¢ 50,000 in your savings account five years from now, and you’re prepared to…

A: Future value of annuity = P * ([1 + I]N - 1 )/I where P is the payment amount. I is equal to the…

Q: What is the present value of receiving $1,000 at the end of each year for 6 years, assuming 7%…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: How much money would you need to deposit today at 9% annual interest compounded monthly to have…

A: Future value (FV) = 700,000 pesos Interest rate = 9% Monthly interest rate (r) = 9%/12 = 0.75%…

Q: How much money should be deposited each year for 12 years if you wish to withdraw $309 each year for…

A: Working note:

Q: The amount a person would need to deposit today to be able to withdraw $6,000 each year for ten…

A: Working note:

Q: If P25, 000 is deposited now into a savings account that earns 6% per year, what uniform annual…

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…

Q: You want to be able to withdraw $5800 each year for 10 years. Your account earns 3% compound…

A: An annuity is the plan that gives a fixed amount in return for a lump sum. It is usually made with…

Q: . What lump sum of money must be deposited in a bank account at present time so that Php 500 monthly…

A: Monthly withdrawal (M) = Php 500 after 6 years (72 months) Number of withdrawals (n) = 5 years = 60…

Q: How much will you have saved at the end of 15 years.

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: How much money would be accumulated in15years for a deposit of $15,000 made at the end-ofyear zero…

A: The formula used as follows:

Q: Find the annual deposit

A: Compound interest is the interest on interest. Under this method the interest is calculated by…

Q: Assume you make 10 equal annual deposits of $2000 into an account paying 8% per year. How much is in…

A: The amount available 6 years after the last deposit will be the future value of this annuity.

Q: a) How much is in the account after the last deposit is made? (b) How much was deposited (c) What…

A: In order to find the following questions, one needs to use excel and apple functions like PMT, FV…

Q: 14: Ali deposits $ 1000 in a savings account at the end of each year. If the bank pays interest rate…

A: The correct answer is 5638.09$ Future value = Amount (1+r)^n = 1000(1.06)^4 + 1000(1.06)^3 +…

Q: Suppose an individual makes an initial investment of $1,600 in an account that earns 8.4%,…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: f K40, 000 is deposited at the end of each half year in an account that earns 6.2% compounded…

A: Comment - Multiple Questions Asked Interest It is the amount that the borrower must pay in order to…

Q: Starting in 6 years you want to be able to withdraw P5,940 every 3 months for 12 years. You want to…

A: Interest rate = 2.08% monthly compounded Amount to withdraw every 3 months (X) = P 5940 Number of…

Q: Supposed you deposited rm5000 in a bank account that pays 5.25%with daily compounding based on a 360…

A: Principal (PV)=5000, Interest rate (rate)=5.25%, compounding daily. time period = 8 months, Total…

Q: If you deposit RM15,000 in an account earning 20% with semi annually compounding, how much would you…

A: Compounding is a way to find the FV of a deposited amount by considering the appropriate rate for…

Q: How much money must initially be deposited in a savings account paying 5% per year, compounded…

A: Formulas:

Q: How much do you have to deposit at the end of each year if you need $ 2856 in 4 years, assuming k =…

A: The Amount to be deposited each year for 4 years at the end of each year shall be computed as above.

Q: The plan was to leave $8,000 on deposit in a savings account for 15 years at 7.5% interest…

A: Deposit amount now (D) = $8000 Interest rate (r) = 7.5% Withdrawal after 5 years (W) = $2000 Period…

Q: 1. If you deposit $28,688 annually at the end of every year in a bank account paying 5% annually,…

Q: The plan was to leave $5,000 on deposit in a savings account for 15 years at 6.5% interest…

A: Principal Amount = $5,000 Interest Rate = 6.5% Time period = 15 years Withdrawal in 5th year =…

Q: What lump sum of money must be deposited into a bank account at the present time so that $500 per…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

Q: If you deposit $25,000 per year for 13 years (each deposit is made at the end of each year) in an…

A: The question is based on the concept time value of money. The future value is defined as the value…

Q: You borrow $10,000 at 8% for 4 years. The loan is repayable in four equal instalments at year end.…

A: Yearly installment will be calculated by amount of borrowing divided by present value factor of $1…

Q: An amount equal to $50,000 is borrowed at 7% annual compound interest.a. What size equal annual…

A: Given information: Amount borrowed is $50,000 Interest rate is 7% Number of payments is 5

Q: how much is this account worth in today's dollars?

A: Present value: It is the present worth of the annuity cashflows discounted over a period of time.…

Q: interest

A: Formula to calculate the annual deposit A(F/A, i, n)(F/P, i, n)

Q: How much monthly deposits must be made for 8 years and 6 months in order to accumulate P250,000 at…

A: A deposit is a financial phrase that refers to money that is kept in a bank. A deposit is a…

Q: If P30,000 is deposited each year for 9 years. How much annuity can a person get annually from the…

A: An annuity refers to a fixed amount or stream of payments or deposits made. Therefore, it helps in…

Q: You wish to have $20,000 in an account 8 years from now. How much moneymust be deposited in the…

A: Computation:

Q: How much money should be deposited annually in a bank account for five years if you wish to withdraw…

A: We required for calculating an amount for 5 years from this time. Then, we need to determine the…

Q: If $20,000 is set aside for 4 years after 16 years. Uniform deposits starting 3 years from now and…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. There are…

Q: Supposed that P2,000 is deposited each year , on a continues basis into a savings account that pays…

A: Annual deposit (P) = P2000 Interest rate = 6% Mathematics constant (e) =…

Q: How much money would you have to deposit for five consecutive years starting one year from now if…

A: Future value (FV) = P 50,000 Interest rate (r) = 14% Number of annual deposit (n) = 5 Period after…

Q: With an annual effective interest rate of 6%, 500 USD is deposited into an account at the end of…

A: we will be using time value of money concepts and formula for this calcualtion Time value of money…

Q: 1.) Mr. Roanito wants to put money in an account that pays 5% interest each year, compounded…

A: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question in case…

Q: Starting in 3 years, you want to be able to withdraw P7,308 every three months for 8 years. You want…

A: Quarterly amount to withdraw (Q) = P 7308 n = 8 years = 32 quarters Interest rate = 5.25% monthly…

Question

100%

How much money would you have to deposit for 5 consecutive years (equal annual
deposits) starting at the end of the year if you want to be able to withdraw ₱ 120,000 each
year for four years starting at the end of the 8th year? i = 11% per year

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
A.How much money should be deposited each year for14 years if you wish to have $26,800 in the account immediately after making the last deposit? Let i=7% per year. B.How much money should be deposited each year for 14 years if you wish to withdraw $2,940 each year for 6 years, beginning at the end of the 15th year? Let i=7% per year. B. The annual deposit amount should equal $ ( Round to nearest cent )
How much money should be deposited each year for 12 years if you wish to withdraw $309 each year for five years, beginning at the end of the 14th year? Let i= 8% per year.